Trump Gold Card: Pay Off The National Debt By Ending US Citizenship Taxation!

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Introduction:

We live in interesting times. This morning I awakened to postings about a new announcement from President Trump. Apparently, the Trump government plans to introduce a new immigration and citizenship opportunity for the millions of people wanting permanent residence and/or citizenship status in the United States. It is called “The Gold Card” (presumably – like American Express Cards – an upgrade from the Green Card). It is NOT replacing the Green Card. It appears to be replacing the EB-5 program which is a “Green Card by investment program”. The beauty of the “Gold Card (should it be called “The Trump Card”) is that it is purely transactional. Pay the USA 5 million USD and you shall have a Green Card with a path to U.S. citizenship. In this respect, the USA is simply catching up with many other countries (including Canada) that offer (or have offered) citizenship by investment and residency by investment programs.

Interestingly, in his announcement, the President suggested that the new “Gold Card” would solve a gap in the U.S. immigration system. For example, corporations could buy residence status (and eventually citizenship) for any non-U.S. citizen. (Presumably the expenditure would be an expenditure for income tax purposes, which would reduce the cost of the “Gold Card” by the amount of the tax savings.)

An interesting idea indeed. Perhaps it’s time that the USA join the club of nations that simply sell their citizenship on a purely transactional basis.

The idea becomes ever more interesting when (as the President points out) there might be enough people that might each pay 5 million dollars for US citizenship or resident status. Could this be enough to wipe out the national debt! Now, this would surely make it worth it for the United States!

At a cost of 5 million dollars, the “Gold Card” will be one of the most expensive Plan B programs in the world. Will the demand be as high as the President suggests? Will wealthy “foreigners” be prepared to pay 5 million for U.S. citizenship?

Of course, some will and some won’t. I suspect that those who understand what U.S. citizenship and having a Green Card (or equivalent tax residency status) really means, will say NO THANKS. It’s not because of the 5 million dollars. It’s because that to become a U.S. citizen or Green Card holder means that one becomes subject to U.S. citizenship taxation.

In simple terms, those lucky “Gold Card Holders”, will be subject to U.S. “worldwide taxation” whether they live in the United States or not. “Worldwide taxation” means that their non-U.S. assets and income streams will instantly become subject to punitive U.S. taxation and reporting. Those moving to the United States will (without expensive and early planning) will learn that any assets, pensions or businesses in their “home country” will be subject to U.S. taxation and reporting.

The “tax issue” has of course not yet been a subject of discussion (very worrying).

The following tweet from X.com includes interesting commentary about taxation, but also includes the excerpts from the announcement.

As might be expected, the announcement of the “Gold Card” has generated interest and commentary. One of the better articles appeared in the Washington Post and may be read here:

https://archive.ph/lsh6W

My comment on a recent article at the Washington Post:

“The 21st Century is a time of unprecedented global mobility. It is a also a time of increased anxiety and a desire for second citizenships and residencies as a kind of “insurance policy” (what many call a “Plan B”). Many people seek second citizenships and residencies to create an option to relocate without actually planning to relocate. The value of these citizenships and residencies is inversely proportional to the amount of time one must be physically present in the country. The less physical presence required in the country, the more valuable the opportunity.

The problem with U.S. citizenship and Green cards is that citizens and Green Card holders are subject to full U.S. taxation even when they don’t live in the United States. Most countries impose worldwide taxation on their residents. But only, the United States imposes worldwide taxation on their nonresident citizens (and Green Card equivalents) who do NOT live in the country. In addition, the U.S. tax system imposes extremely punitive penalty laden reporting requirements on “non-US assets” and certain income streams.

Bottom line: U.S. citizenship is of no value to and is a liability for any person who does not live in the United States. This fact makes U.S. citizenship (or a Green card) the worst thing to consider for people looking for a Plan B. The problem is so severe that there are some U.S. citizens who are willing to pay more than 5 million in exit taxes to renounce their U.S. citizenship. (You do NOT leave the “Land Of The Free” for free.)

As long as U.S. citizenship taxation continues, the only people who will see this program as attractive are those who (1) are certain that they want to live the rest of their lives in the USA (really?) and (2) do NOT understand how the U.S. tax system applies to U.S. citizens and Green Card holders who do NOT live in the United States.

If U.S. citizens were stocks, they would trade at a discount to the citizens of all other first world democracies!

https://wapo.st/41yLpBQ“

If the impediment to people buying the Gold Card, is the U.S. imposition of worldwide taxation on people who don’t live in the USA, perhaps it’s time to do the unthinkable:

End U.S. citizenship taxation AKA End The Double Taxation Of Americans Abroad!

Interestingly, President Trump’s pledge to end the double taxation of Americans abroad (as described in this article), could actually be the key to establishing the “Gold Card” as a mechanism to pay off the national debt!

My God – do you realize that ending U.S. citizenship taxation could be the vehicle to wiping out the national debt!

Think of it! By ending US citizenship AKA double taxation, the US could “kill two birds with one stone!”

On the other hand, U.S. citizenship taxation is a tradition. Perhaps it should be continued because it is a tradition!

John Richardson – Follow me on X.com @ExpatriationLaw

One thought on “Trump Gold Card: Pay Off The National Debt By Ending US Citizenship Taxation!”

  1. gds

    Can someone ask President Trump when he plans to cancel Citizenship Taxation. Please remind him that all the expats in the world that voted for him and this pledge are waiting!!

    Reply ↓

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